The Effect of Incentives on Employee Performance and Turnover Intention with Job Satisfaction as A Mediator Variable at Pt Angkasa Pura II Sultan Iskandar Muda Aceh Airport Branch Office

Teja Yus Putra*, Muhammad Adam, & Mukhlis Yunus
Management Department, Universitas Syiah Kuala, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2024.7702

Abstract

This research aims to test how incentives have a direct impact on employee performance and turnover intention, which then involves the level of job satisfaction as a mediator to test the indirect impact. The sample used is a population of PT Angkasa Pura II Sultan Iskandar Muda Aceh Airport Branch Office (AP II Aceh), namely all 212 company employees who were analyzed via SEM AMOS. This research proves that all variables in this research have worked well, and the turnover rate is at a low position. Then, incentives show their position in increasing employee satisfaction and performance. Apart from that, if the incentives get better, it will reduce the desire of employees to move from their current place of work. Satisfaction also plays a role in increasing employee performance and reducing turnover that can occur. Finally, satisfaction has a role in partially mediating the incentive effect on employee performance and turnover intention. The model tested as a result of this research is also useful for practitioners as a reference for solving existing problems, especially practitioners involved in the subject of this research. Limitations exist in the variables and forms of modeling that are proven.

Keywords: Incentives, Job Satisfaction, Employee Performance, Turnover Intention

References

  • Adhiatma, A., Sari, R. D., & Fachrunnisa, O. (2022). The role of personal dexterity and incentive gamification to enhance employee learning experience and performance. Cognition, Technology & Work, 24, 7–19.
  • Al-Qathmi, A., & Zedan, H. (2021). The Effect of Incentive Management System on Turnover Rate, Job Satisfaction and Motivation of Medical Laboratory Technologists. Health Services Research and Managerial Epidemiology, 8, 1–13. https://doi.org/https://doi.org/10.1177/233339282098840
  • Albalushi, A. A., & Devesh, S. (2023). Employees motivation for better job performance: importance of financial and non-financial incentives in banking systems− Case of Oman. QScience Connect, 1(5), 1–9. https://doi.org/http://doi.org/10.5339/connect.2023.spt.5
  • Ali, B. J., & Anwar, G. (2021). An Empirical Study of Employees’ Motivation and Its Influence Job Satisfaction. International Journal of Engineering, Business and Management, 5(2), 21–30. https://doi.org/https://doi.org/10.22161/ijebm.5.2.3
  • Alkandi, I. G., Khan, M. A., Fallatah, M., Alabdulhadi, A., Alanizan, S., & Alharbi, J. (2023). The Impact of Incentive and Reward Systems on Employee Performance in the Saudi Primary, Secondary, and Tertiary Industrial Sectors: A Mediating Influence of Employee Job Satisfaction. Sustainability, 15(4), 3415. https://doi.org/https://doi.org/10.3390/su15043415
  • BARNES, J. G. (2003). Secrets of customer relationship management. New York: McGraw Hill.
  • Chen, C.-F., & Chen, F.-S. (2010). Experience quality, perceived value, satisfaction and behavioral intentions for heritage tourists. Tourism Management, 31(1), 29–35. https://doi.org/https://doi.org/10.1016/j.tourman.2009.02.008
  • Elrayah, M., & Semlali, Y. (2023). Sustainable Total Reward Strategies for Talented Employees’ Sustainable Performance, Satisfaction, and Motivation: Evidence from the Educational Sector. Sustainability, 15(2), 1605. https://doi.org/https://doi.org/10.3390/su15021605
  • Haileyesus, M. (2019). Determinants of University Staff Turnover Intention: The Case of Dire Dawa University, Ethiopia. Journal of Economics and Sustainable Development, 10(17), 20–28.
  • Hulkko-Nyman, K., Sarti, D., Hakonen, A., & Sweins, C. (2012). Total rewards perceptions and work engagement in elder-care organizations: findings from Finland and Italy. International Studies of Management & Organization, 41(1), 24–49. https://doi.org/https://doi.org/10.2753/IMO0020-8825420102
  • Ikhlas, M., Adam, M., & Halimatussakdiah. (2022). The Effect of Workload and Remuneration on Performance with Job Satisfaction as a Mediation at Meuraxa Hospital in Banda Aceh. International Journal of Business Management and Economic Review, 5(1), 40–50. https://doi.org/http://doi.org/10.35409/IJBMER.2022.3356
  • Liu, W., & Liu, Y. (2022). The Impact of Incentives on Job Performance, Business Cycle, and Population Health in Emerging Economies. Frontiers in Public Health, 9, 1–14. https://doi.org/10.3389/fpubh.2021.778101
  • Luthans, F., Luthans, B. C., & Luthans, K. W. (2021). Organizational Behavior: An Evidence-Based Approach Fourteenth (14th ed.). Charlotte, North Carolina, America: Information Age Publishing.
  • Luz, C. M. D. R., Paula, S. L. de, & Oliveira, L. M. B. de. (2018). Organizational Commitment, Job Satisfaction, and Their Possible Influence on Intent to Turnover. Revista de Gestão, 25(1), 84–101. https://doi.org/https://doi.org/10.1108/REGE-12-2017-008
  • Masemola, S. E. (2011). Employee turnover intentions, organisational commitment and job satisfaction in a post-merger tertiary institution : the case of the University of Limpopo. Faculty of Management and Law, University of Limpopo, South Africa.
  • Rahmad, Harmen, H., & Sakir, A. (2022). The Effect of Motivation and Perception of Compesation Fairness on Employee Performance Mediated by Job Satisfaction on Hotel Employees in Banda Aceh. International Journal of Business Management and Economic Review, 5(1), 62–74. https://doi.org/http://doi.org/10.35409/IJBMER.2022.3358
  • Rosario-Hernánde, E., & Millán, L. V. R. (2018). Effect of the Exposure to Workplace Bullying on Turnover Intention and the Mediating Results of Job Satisfaction. La Revista Interamericana de Psicología Ocupacional, 37(1), 26–51. https://doi.org/0.21772/ripo.v37n1a03
  • Soeraiya, R., Sofyan, & Majid, M. S. A. (2022). The Effect of Public Service Motivation and Job Satisfaction on Career Commitment With Employee Performance as a Mediation Variable at Jabal Ghafur University. International Journal Of Business Management And Economic Review, 5(1), 23–39. https://doi.org/http://doi.org/10.35409/IJBMER.2022.3355